Common shares outstanding plus shares underlying stock-based awards
totaled 464 million on March 31, 2012, compared with 466 million a year
ago. During the quarter, the Company repurchased 5.3 million shares, or
$960 million, under its previously announced authorization to repurchase
up to $2 billion of the Company's common stock.

Net sales increased 34% to $13.18 billion in the first quarter, compared
with $9.86 billion in first quarter 2011. Excluding the $56 million
unfavorable impact from year-over-year changes in foreign exchange rates
throughout the quarter, net sales would have grown 34% compared with
first quarter 2011.

Operating income was $192 million in the first quarter, compared with
$322 million in first quarter 2011. The unfavorable impact from
year-over-year changes in foreign exchange rates throughout the quarter
on operating income was $4 million.

Net income decreased 35% to $130 million in the first quarter, or $0.28
per diluted share, compared with net income of $201 million, or $0.44
per diluted share, in first quarter 2011.

“I’m excited to announce that we now have more than 130,000 new,
in-copyright books that are exclusive to the Kindle Store – you won’t
find them anywhere else. They include many of our top bestsellers – in
fact, 16 of our top 100 bestselling titles are exclusive to our store,”
said Jeff Bezos, founder and CEO of Amazon.com. “If you’re an Amazon
Prime member, you don’t even need to buy these titles – you can borrow
them for free – with no due dates – from our revolutionary Kindle
Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily
used by Kindle owners, and it has extremely unusual features that both
authors and customers love. Every time you borrow a book, the author
gets paid – and we have an inexhaustible supply of each title so you
never have to wait in a queue for the book you want. Kindle is the
bestselling e-reader in the world by far, and I assure you we’ll keep
working hard so that the Kindle Store remains yet another reason to buy
a Kindle!”

Highlights

Kindle Fire remains the #1 bestselling, most gifted, and most wished
for product across the millions of items available on Amazon.com since
launch. In the first quarter, 9 out of 10 of the top sellers on
Amazon.com were digital products – Kindle, Kindle books, movies, music
and apps.

Amazon launched Kindle Touch Wi-Fi and Kindle Touch 3G on
Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es. The full
line of Kindle e-ink readers is now available in over 175 countries
around the world. Kindle Touch 3G is the most full-featured e-reader
with an easy to use touchscreen and the unparalleled convenience of
free 3G – no hunting for Wi-Fi spots, simply think of a book and
download it. Kindle remains the bestseller on Amazon.co.uk, Amazon.de,
Amazon.fr, Amazon.it and Amazon.es since their launches.

Amazon introduced a new version of its popular Kindle for iPad app,
which is the #5 free iPad app of all time and the #1 free books app on
iPad. Millions of customers are using the new Kindle for iPad app,
which is optimized for the high resolution display of the newest iPad.

Amazon announced an In-App Purchasing service, making it easy for
Amazon Appstore developers to offer digital content and subscriptions
for purchase within apps and games that are available on millions of
Kindle Fires and other Android devices. Amazon Appstore’s In-App
Purchasing service is simple for developers to integrate and helps
monetize their apps and games, while offering customers a seamless and
secure 1-Click purchasing experience.

Amazon.com announced the launch of the Amazon Instant Video app for
PlayStation 3 (PS3), making the PS3 system the first video game
console system to offer Amazon Instant Video, and allowing PS3 users
to stream Prime Instant Videos and rent or buy the latest movies and
TV episodes directly from their PS3. Customers can also access Amazon
Instant Video and Prime Instant Video from Kindle Fire, Mac or PC, or
on a TV using either a compatible connected device such as a Blu-ray
player or a Roku or directly on compatible Smart TVs.

Amazon continued to expand its catalog of title offerings for Prime
Instant Video, announcing licensing agreements with Discovery
Communications and Viacom. Among the programs added are Discovery
Channel’s Dirty Jobs, TLC’s Say Yes To The Dress and
Animal Planet’s Whale Wars, as well as thousands of TV episodes
from MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT
and Logo. These deals bring the total number of Prime Instant Videos
to more than 17,000 movies and TV episodes from partners such as CBS,
Fox, NBCUniversal, Sony, Warner Bros., PBS, Disney-ABC and many more.

North America segment sales, representing the Company’s U.S. and
Canadian sites, were $7.43 billion, up 36% from first quarter 2011.

Worldwide Electronics and Other General Merchandise sales grew 43% to
$7.97 billion. Excluding the unfavorable impact from year-over-year
changes in foreign exchange rates throughout the quarter, sales grew
43%.

Amazon Web Services (AWS) announced that Amazon DynamoDB – the fastest
growing AWS service ever – is now available in both the EU (Ireland)
and Asia Pacific (Tokyo) Regions. Amazon DynamoDB is a fully managed
NoSQL database service that provides extremely fast and predictable
performance with seamless scalability.

AWS lowered prices for the 19th time in five years by
reducing reserved instance prices for Amazon EC2 and Amazon RDS, as
well as reducing on-demand pricing for Amazon EC2, Amazon RDS, and
Amazon ElastiCache.

AWS launched AWS Marketplace, an online store that makes it easy for
customers to find, compare, and immediately start using the software
and services they need to build software systems and products, and run
their businesses. With AWS Marketplace, software and SaaS providers
with offerings that run in the AWS Cloud can benefit from increased
awareness, simplified deployment, and automated billing. AWS
Marketplace brings the same simple, trusted, and secure online
shopping experience that customers enjoy on Amazon.com to software
built for the AWS platform, streamlining the process of doing research
and purchasing software.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s
expectations as of April 26, 2012, and exclude financial results of the
Kiva Systems, Inc. acquisition which we expect to close in second
quarter 2012. Our results are inherently unpredictable and may be
materially affected by many factors, such as fluctuations in foreign
exchange rates, changes in global economic conditions and consumer
spending, world events, the rate of growth of the Internet and online
commerce and the various factors detailed below.

Second Quarter 2012 Guidance

Net sales are expected to be between $11.9 billion and $13.3 billion,
or to grow between 20% and 34% compared with second quarter 2011.

Operating income (loss) is expected to be between $(260) million and
$40 million, or between 229% decline and 80% decline compared with
second quarter 2011.

This guidance includes approximately $260 million for stock-based
compensation and amortization of intangible assets, and it assumes,
among other things, that no additional business acquisitions or
investments are concluded and that there are no further revisions to
stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and
will be available for at least three months at www.amazon.com/ir.
This call will contain forward-looking statements and other material
information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict.
Actual results could differ materially for a variety of reasons,
including, in addition to the factors discussed above, the amount that
Amazon.com invests in new business opportunities and the timing of those
investments, the mix of products sold to customers, the mix of net sales
derived from products as compared with services, the extent to which we
owe income taxes, competition, management of growth, potential
fluctuations in operating results, international growth and expansion,
the outcomes of legal proceedings and claims, fulfillment center
optimization, risks of inventory management, seasonality, the degree to
which the Company enters into, maintains and develops commercial
agreements, acquisitions and strategic transactions, and risks of
fulfillment throughput and productivity. Other risks and uncertainties
include, among others, risks related to new products, services and
technologies, system interruptions, government regulation and taxation,
payments and fraud. In addition, the current global economic climate
amplifies many of these risks. More information about factors that
potentially could affect Amazon.com’s financial results is included in
Amazon.com’s filings with the Securities and Exchange Commission
(“SEC”), including its most recent Annual Report on Form 10-K and
subsequent filings.

Our investor relations website is www.amazon.com/ir
and we encourage investors to use it as a way of easily finding
information about us. We promptly make available on this website, free
of charge, the reports that we file or furnish with the SEC, corporate
governance information (including our Code of Business Conduct and
Ethics), and select press releases and social media postings.

About Amazon.com

Amazon.com, Inc. (NASDAQ:AMZN), a Fortune 500 company based in Seattle,
opened on the World Wide Web in July 1995 and today offers Earth’s
Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most
customer-centric company, where customers can find and discover anything
they might want to buy online, and endeavors to offer its customers the
lowest possible prices. Amazon.com and other sellers offer millions of
unique new, refurbished and used items in categories such as Books;
Movies, Music & Games; Digital Downloads; Electronics & Computers; Home
& Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health &
Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web
Services provides Amazon’s developer customers with access to
in-the-cloud infrastructure services based on Amazon’s own back-end
technology platform, which developers can use to enable virtually any
type of business. The new latest generation Kindle is the lightest, most
compact Kindle ever and features the same 6-inch, most advanced
electronic ink display that reads like real paper even in bright
sunlight. Kindle Touch is a new addition to the Kindle family with an
easy-to-use touch screen that makes it easier than ever to turn pages,
search, shop, and take notes – still with all the benefits of the most
advanced electronic ink display. Kindle Touch 3G is the top of the line
e-reader and offers the same new design and features of Kindle Touch,
with the unparalleled added convenience of free 3G. Kindle Fire is the
Kindle for movies, TV episodes, music, books, magazines, apps, games and
web browsing with all the content, free storage in the Amazon Cloud,
Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated
web browser), vibrant color touch screen, and powerful dual-core
processor.

References to customers mean customer accounts, which are unique
e-mail addresses, established either when a customer places an order
or when a customer orders from other sellers on our websites. Customer
accounts exclude certain customers, including customers associated
with certain of our acquisitions, Amazon Enterprise Solutions program
customers, Amazon.com Payments customers, Amazon Web Services
customers, and the customers of select companies with whom we have a
technology alliance or marketing and promotional relationship.
Customers are considered active when they have placed an order during
the preceding twelve-month period.

Seller Accounts

References to sellers means seller accounts, which are established
when a seller receives an order from a customer account. Seller
accounts exclude Amazon Enterprise Solutions sellers. Sellers are
considered active when they have received an order from a customer
during the preceding twelve-month period.

Registered Developers

References to registered developers mean cumulative registered
developer accounts, which are established when potential developers
enroll with Amazon Web Services and receive a developer access key.